Law seeks to improve transparency among LLCs
Following a string of scandals involving limited liability corporations registered in Delaware, state lawmakers are considering a bill that seeks to improve the culture of transparency without setting down hard and fast rules.
The Certification of Adoption of Sustainability and Transparency Standards Act would give LLCs the option to adopt better transparency standards.
The Department of State will provide the form of the application to the program, but it will not measure the quality of the standards or determine if the company has acted in a responsible or sustainable manner. The summary of the bill states that the law does not prescribe specific standards due to the wide variety of companies in the state with separate needs and priorities.
To be certified, a company must only adopt the transparency regime it sees fit and then disclose its standards on an annual basis. The state will impose no fines or penalties for failing to certify.
Rep. Melanie George Smith, a Democrat from Bear, is the primary sponsor of the bill. Both Democrats and Republicans have signed on as co-sponsors.